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31. Rank these financial assets according to their liquidity, most liquid to least: cash, corporate bonds, NYSE-traded stocks, and T-bills. A) T-bills, corporate bonds, and
31. Rank these financial assets according to their liquidity, most liquid to least: cash, corporate bonds, NYSE-traded stocks, and T-bills. A) T-bills, corporate bonds, and NYSE-traded stocks. B) T-bills, NYSE-traded stocks, and corporate bonds. C) NYSE-traded stocks, T-Bills, and corporate bonds. D) Corporate bonds, T-Bills, and NYSE-traded stocks. E) NYSE-traded stocks, corporate bonds, and T-Bills. 32. As of April 20, 2020 the Federal Reserve has set the trading range for the Fed Funds Rate to? A) 1.5-1.75% B) 0.5 to 0.75% C) 0.0 -0.25% D) 1-1.25% E) the Fed does not try to set the range for the Fed Funds Rate. 33. Which of the following is true about securitization and regulatory taxation for an FI? A) Since the loans are no longer on the balance sheet of the FI then there is no need post more capital to protect against default risk. B) Reserve requirements will be reduced if liabilities are also reduced. C) Deposit insurance will be reduced if liabilities are also reduced. D) All of the above are true. E) None of the above are true. 34. Which of the following is not a factor that cause early payment on a mortgage loan (repayment risk)? A) Lower interest rates in an economy. B) Refinancing of the loan by the borrower. C) The sale of a house. D) Increase in personal income E) All of the above. 35. Which of the following is false? A) The COVID-19 pandemic has increased bank profits for the second quarter of 2020. B) Many large banks are increasing reserves in the second quarter of 2020. C) Inflation for 2020 is now projected lower as a result of the pandemic D) Quantitative Easing (QE) has begun again in 2020. E) All of the above are true
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